CHEMICAL LOGISTICS ONAROLL
regulatory singularity,” says Kaitwade. This would allow more seamless transactions between markets with different regulatory regimes. To ensure quality talent remains in the sector, a focus on improving the workplace environment also is key, Kaitwade says. This includes not only health and safety, but wage rates and other benefits.
distribution network, rein in costs, or enhance shipment security. CLX experts can help clients model their supply chains and determine which locations will be most effective for their operations. As part of that analysis, CLX can draw on extensive freight cost benchmarking data it has amassed, in part through its partnership with BluJay Solutions.
The macro changes impacting chemical logistics show no sign of slowing down. A more holistic approach to network modeling has become critical, Rodysill says. That means evaluating physical logistics networks on a global—rather than regional—basis and considering all costs, such as taxes, tariffs, and others. This in-depth analysis helps pinpoint where it makes sense to add inventory and where to stay lean. Adding inventory tends to make sense when you can drive more sales at higher margins. Conversely, when managing regulated products, keeping inventory levels lean and expediting shipments to a location, when needed, can be more cost-effective, Rodysill says, since it’s generally harder to move this inventory between countries, as regulations often differ. Given the futility of trying to predict how regulations might change, the ability to model various scenarios becomes even more critical, Rodysill says. If a model shows a 25% chance a shift will go one way, and a 30% chance it will go another, organizations can decide how to plan for each possibility. Stakeholders from the chemical logistics sector should increase collaboration with regulators across the globe to bring about “standardization and
Valued at about $253.7 billion in 2019, the global chemical logistics market is forecast to reach $322.5 billion by 2027.
The companies profiled here have been navigating the recent challenges with intelligence, dedication, and a commitment to their clients and the important work they’re doing. CLX LOGISTICS: PROVIDING ECONOMIC VALUE The goal of every employee at CLX Logistics is “to provide economic value to our customers,” says CEO David Vieira. By drawing on its extensive history in the chemical logistics sector, CLX Logistics can provide the knowledge, technology, services, and processes needed to meet this goal, whether its clients are trying to optimize their
Another CLX offering, Gravity, provides enhanced data analytics and extensive data integration capabilities. It’s able to work with information its customers generate internally or capture from external sources. CLX LaneLogix ™ offers freight cost and service level benchmarking. This software, which has been developed specifically for the chemical industry over the past 20 years, incorporates requirements particular to chemical shipments, such as dangerous goods, equipment, and service requirements. “It does not compare the rate for a chemical shipment with, for instance, the rate for a food shipment,” Vieira says. A chemical company with more than $100 million in annual transportation spend across multiple lanes and modes and with a mix of products turned to CLX to benchmark its costs and evaluate its procurement strategy. By leveraging its expertise and LaneLogix’s capabilities, CLX was able to analyze the company’s contracts and costs and gain visibility to all modes across the company’s global network. CLX then worked with the company to optimize its chemical supply chain. Among other results, CLX identified savings of about 9 million euros (US$10.9 million), as well as opportunities to reduce complexity by combining and managing disparate systems. In some organizations, the inbound logistics function doesn’t always receive the attention it deserves from chemical
CLX Logistics helps chemical shippers enhance the security of shipments and optimize their distribution networks, leveraging its chemical 4PL division ChemLogix.
72 Inbound Logistics • June 2021
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